EUROPEAN SESSION In the European session, we get the preliminary CPI reports for Spain and Germany.
EUROPEAN SESSION In the European session, we get the preliminary CPI reports for Spain and Germany. Before the German CPI, we will get the German states figures which generally give clues on the national CPI data.
The national CPI is essentially a weighted average of the states. Inflation is expected to ease a bit on a monthly basis but still remain elevated due to the Strait of Hormuz closure. The data isn’t going to change anything for the ECB at this point as the central bank has already pre-committed to a hold as they gather more data and hope for a resolution before their next meeting in June.
AMERICAN SESSION In the American session, we have the BoC and FOMC policy decisions. The Bank of Canada is widely expected to keep the policy rate unchanged at 2.25% tomorrow. The central bank will likely maintain a cautious stance and a “wait and see” approach amid sluggish economy and inflationary risks stemming from US-Iran war.